Ministry of Science and Technology: To Encourage the Establishment of New Scientific and Technological People-run Non-enterprise R&D Agencies
To further implement the innovation-driven development strategy and promote the healthy and orderly development of new-type R&D institutions, enhance the overall efficiency of the national innovation system, the Ministry of Science and Technology issued the Guideline on Promoting the Development of New-type R&D Institutions (hereinafter referred to as the Guideline). The Guideline pointed out that an new R&D institution is an independent legal institution that focuses on the needs in scientific and technological innovation, and which is engaged in scientific research, technological innovation, and R&D services. They have multiple investment subjects, marketized operation mechanisms, and flexible employment systems and thus can be legally registered as scientific and technological people-run non-enterprise units (social service agencies), public institutions and enterprises.
The Guideline emphsized that to promote the development of new-type R&D institutions, it is necessary to strengthen policy guidance and gurantee, combine incentives and restraints, and mobilize all sectors of socirty to participate. In particular, the Guideline encouraged the establishment of scientific and technological people-run non-enterprise units (social service agencies) as new R&D institutions. Scientific and technological people-run non-enterprise units should be legally registered and managed, and their profits should only be used for their own management, and R&D innovation, not to be divided by the investors. Qualified scientific and technological people-run non-enterprise units can enjoy preferential tax treatments in accordance with the Law of the PRC on Enterprise Income Tax, Regulations on the Implementation of Enterprise Income Tax Law of the PRC, and other regulations on enterprise income tax of NPOs, individual income tax on scientific and technological achievements transformation, and import tax on scientific and technological innovation.
According to the Guideline, generally a scientific and technological people-run non-enterprise unit should meet five conditions. First, it should have an independent legal person status and a sound internal control system. Second, it should focus on conducting basic research, applied basic research, R&D of common key technologies of the industry, transformation of scientific and technological achievements, and R&D services. Third, it should have the necessary conditions and equipments for R&D, experiments, and services. Besides, it is supposed to have a talent team with a relatively reasonable and stable structure and strong R&D capability. In addition, it should have stable sources of income, including investment from the investors, profits from technological development, technology transfer and technical services and consultation, and income from government's purchase of the services and from undertaking scientific research projects.
The Guideline also stated that scientific and technological people-run non-enterprise units should, in principle, set a system in which the board of directors and the board of trustees make decisions while president and the general manager are in charge.
